U.S. Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development (HUD) is committed to supporting homeownership, access to affordable housing free from discrimination, and innovative and sustainable community development. With a total allocation of $43.7 billion, the President's fiscal year 2010 budget restores and increases funding for many key HUD programs. The budget meets the President’s commitment to fully fund the Community Development Block Grant (CDBG) program, while reforming the CDBG formula to better target distressed communities and promote the development of "Sustainable Communities." It also increases funding for the Housing Choice Voucher program and the Project-Based Rental Assistance Program, and creates a new Choice Neighborhoods Initiative and Energy Innovation Fund. In light of the current Housing crisis, the Budget provides funding for the Housing Trust Fund created last summer, as well as strengthens efforts to combat mortgage fraud and predatory lending. The HUD budget is consistent with the President’s goal of eliminating funding for duplicative programs like the Brownfields Economic Development Initiative program and the American Dream Downpayment Initiative.

HELPING PEOPLE TO AFFORD SAFE, DECENT HOUSING

Provides funding for a Housing Trust Fund for the first time. The Budget requests $1 billion in initial financing of the development, rehabilitation, and preservation of affordable housing for very low-income residents through the Housing Trust Fund.

Increases funding for the Housing Choice Voucher program. To address the program’s costly inefficiencies, the Administration will introduce legislative reforms to help fully utilize available funding, alleviate the administrative burdens on the Public Housing Authorities, and establish a funding mechanism that is transparent and predictable in order to serve more needy families. This program helps more than two million extremely low- to low-income families with rental assistance to live in decent housing in neighborhoods of their choice.

Increases funding for the Project-Based Rental Assistance program. The Project-Based Rental Assistance program will preserve approximately 1.3 million affordable rental units through increased funding for contracts with owners of multifamily properties. This critical investment will assist low- and very low-income households in obtaining decent, safe and sanitary housing in private accommodations.

Combats mortgage fraud and predatory lending practices. The Budget provides funds to combat mortgage fraud and predatory lending practices, and includes increased funding for fair housing enforcement. These resources will allow HUD to increase enforcement of mortgage and home purchase settlement requirements. Enhanced enforcement will create an environment in which home-buyers will be served with mortgage terms that are more easily understood and reliably honored by lenders.

BUILIDNG ECONOMIC OPPORTUNITY

Fully funds the Community Development Block Grant program. The Budget provides $4.5 billion to ensure that communities continue to invest in and expand economic opportunities for low-income families. Also, modernizes the program through statutory reforms. Through a more effective formula, appropriate incentives and accountability measures, and a new Sustainable Communities Initiative, the Administration will revamp the CDBG program to better target funds to distressed communities and promote sustainable and economically viable communities.

Creates a new Choice Neighborhoods Initiative. The Budget provides $250 million for HUD to help transform neighborhoods of extreme poverty, where there are significant federal investments such as public or assisted housing, into sustainable mixed-income neighborhoods with well-functioning services, schools, public assets, transportation and access to jobs. This new initiative would challenge public, private and nonprofit partners to identify neighborhood interventions that would have the largest return on Federal investments.

Creates a new Energy Innovation Fund. The Budget provides $100 million to support the creation of an energy-efficient housing market -- including "retrofitting" of older, inefficient housing -- and to catalyze private-sector lending in the residential sector.